Shenzhen-based Xunlei provides a person-to-person file sharing network and other downloading services. More than 80 million users have installed its software and its websites attract more than 50 million visitors a day, the China Daily said.

Baidu.com controlled nearly 57% of China's search-engine market at the end of June, according to Analysis International, a Beijing-based IT research company.

Sources have said both Baidu and Google, which has only 16% of the China market, are exploring options to expand their online video services in the world's fourth-largest economy.

The moves come after Google closed its $1.65 billion acquisition of top online video-sharing site YouTube. Baidu also launched its own Chinese-language video Web channel on a trial basis a few months ago.